When we talk about bankruptcy, it is possible that the same person finds himself in the situation of declaring bankruptcy more than once throughout his life. The good news—if you can call it that—is that there is no law against filing bankruptcy two, three, or as many times as you reach that point of desperation and want a way out. However, there are many rules about how many times you can file bankruptcy and how often you can file a case. They’re a bit complicated, so let’s take a look at what you need to know.
How long do you have to wait between one bankruptcy and another?
Although there is no law that restricts how often you can file bankruptcy, there are some practical issues that may limit you. First, if your filings are abusive or for the sole purpose of delaying or frustrating your creditors, a bankruptcy judge may stop your filing. When this happens, a judge can dismiss your case with a “one-year bar,” for example, restricting you from filing a bankruptcy petition in the following year.
Second, the bankruptcy code restricts how often you can get a waiver. In other words, the bankruptcy code restricts how often your debts can be forgiven. If you received a discharge in your first bankruptcy, then a certain amount of time must pass before you can have your debts discharged by the courts again. Therefore, although you can file bankruptcy as many times as you need, you will not receive a second discharge until a certain amount of time has elapsed.
In addition to how many times you can file bankruptcy, you may be wondering if you should even if you can’t get your debts forgiven, but there are plenty of reasons to. You may want to file in order to set up a payment plan, to pay off mortgage arrears, or to catch up on missed car payments, for example. Whether you are eligible for a discharge in your second bankruptcy case depends on whether you received a discharge in the first case, what type of discharge you received, and what type of case you are filing.
There are alternatives to bankruptcy if you prefer not to wait for the deadline to expire. Participating in a credit counseling session with a nonprofit agency is a good place to start. They will help you determine your options, which may include a debt management plan (DMP). A DMP is less damaging to your credit score than bankruptcy, but it can be a difficult program to qualify for. For more information, however, you can turn to an experienced bankruptcy attorney like Michael Brooks.
How many times you can file for bankruptcy based on the combination of chapters
Chapter 7 to Chapter 13 – Time limit
If you were granted your first discharge under Chapter 7, you will have to wait four years from the Chapter 7 filing date before filing Chapter 13.
Chapter 7 to Chapter 7 – Time Limit
Chapter 7 is the fastest path to debt relief, but you cannot be a serial filer. You have to wait eight years between filing dates, the longest amount in the Bankruptcy Code.
Chapter 13 to Chapter 7 – Time Limit
The standard wait is six years, but it’s not set in stone. The waiting period often does not apply if you paid all of your debts under the Chapter 13 provision, or if you paid at least 70% of them and made a good faith effort to pay them all. If you meet those requirements, you can file for Chapter 7 within one year of reinstatement under Chapter 13.
Chapter 13 to Chapter 13 – Time Limit
How many times you can file for Chapter 13 bankruptcy only involves waiting two years, but that’s an unusual maneuver since the minimum length of a Chapter 13 repayment is three years. Unforeseen difficulties may strike and necessitate a quicker second filing.
How many times can you file for bankruptcy?
There are time limits between submissions, but there is no limit to the number of times you can submit. Theoretically, a person with poor debt management skills could declare bankruptcy a dozen or more times in their lifetime.
Filing for bankruptcy again after a dismissal
There is a big difference between a discharge and a dismissal. A discharge means that you have met all the requirements set by the bankruptcy court. You are no longer on the hook for applicable debts and your case is closed. Instead, a dismissal means your case has been closed without your debts being wiped out. It’s like you never filed for bankruptcy. You are back to square one and your creditors can start harassing you again.
You can refile a case after a dismissal, but how soon depends on why your case was dismissed. For example, you must complete a credit counseling course from a licensed agency within 180 days before you file for bankruptcy. The counselor gives you an idea of whether there is a better alternative to bankruptcy, such as enrolling in a DMP. If you decide to go through with bankruptcy, you must have a certificate showing that you have completed the counseling course. If you do not, the court will automatically dismiss your case. But if you hurry up and take the course, you’ll likely be allowed to reapply right away.
In other words, if you acted in good faith, you shouldn’t have a problem with how many times you can file for bankruptcy. But whether this is your first time filing bankruptcy or you’ve filed for bankruptcy a dozen times, the first thing you should do is search for a bankruptcy lawyer at Bankruptcy Now and get professional advice.